Budgets and performance reports should be developed on the basis of
A) responsibility accounting.
B) generally accepted accounting principles.
C) financial accounting standards.
D) managerial accounting standards.

Question

Quizplus · Accepted Answer

Budgets and performance reports should be developed on the basis of responsibility accounting, which involves assigning responsibility for cost control, revenue generation, and asset utilization to specific individuals or departments within an organization. This enables managers to monitor the performance of each department or individual and make informed decisions based on the results. Generally accepted accounting principles, financial accounting standards, and managerial accounting standards are all important considerations in accounting, but they do not specifically address the issue of responsibility accounting.

Budgets and Performance Reports Should Be Developed on the Basis